There are commercials, rumors, and tall tales about the government giving money away all of the time. Sometimes the government does offer grants, incentives, and special rates for certain things, but most of what you hear is too good to be true. One major misconception is that the government gives small business loans. This isn’t exactly true.
What they do, however, is guarantee certain small business loans through local lenders. Are they available to everyone? They could be, but usually not. There are specific eligibility requirements. How do you know if you or your business is eligible?
Small Business Loans for Minorities, Women, and Veterans
The Small Business Administration guarantees loans, typically through community lenders and credit unions. The agency also has business lending programs for women, minorities, or who have served in the military. If you fit any of these descriptions, you may be eligible for a government guaranteed SBA loan.
State of Emergency
If the government declares a state of emergency, and your business is located in the area, you may be eligible for a guaranteed loan under one of the SBA’s emergency loan programs. These loans are available to help rebuild a company that has suffered physical damage from a natural disaster such as a hurricane, tornado, or flood.
Rural Business Loans
There are a few government guarantee loan programs for those businesses that are located in rural areas. One example is the B&I Guaranteed Loan Program through the USDA. The funds can be used for working capital, machinery and equipment, buildings, real estate, and even certain types of debt refinancing.
If you are looking for any type of small business financing, Biz2Credit can help. Our extensive network of lenders offers financing of all types, and we can help you find the perfect one for you. Visit Biz2Credit today for more information.